Spriha's Journey Towards Financial Literacy
Chapter 5: Saving Money
Key topics in this chapter
1.1 Why Save? Explain the benefits of saving for emergencies and future goals.
1.2 Bank Accounts: Introduce the role of banks and the concept of interest.
1.3 Set Savings Goals: Teach how to set specific goals for their savings.
1.4 Exercise: Help your child set up a pretend savings account using a notebook.
Introduction
In the previous chapters, we followed Spriha as she learned about earning money and the difference between needs and wants. Today, we continue our journey with Spriha as she discovers the wonderful world of saving money, banks, and interest.
Why Save Money?
Saving money is like magic! It allows you to put a little bit aside today to have more tomorrow. Saving can help you in many ways. It can be your safety net for unexpected things that might happen, like when you accidentally break a toy or need a new backpack.
Spriha’s parents explained to her that saving money could also help her reach her dreams and achieve her goals. She wanted that shiny new bicycle more than anything, and she knew saving was the key to getting it.
Banks and savings Account
You might wonder where to keep your saved money. That’s where banks come in. Banks are like magical treasure chests that keep your money safe and help it grow. When you put your money in a bank, you open a savings account.
Savings accounts work like this: when you put your money in the bank, they give you a little extra money called “interest.” It’s like a reward for keeping your money safe and sound in the bank. Spriha learned that her saved money would grow faster in a savings account.
Set Saving Goals
To make saving even more fun, Spriha decided to set savings goals. She created a special chart where she could track her progress. Every time she added money to her savings jar, she also updated her chart. It made her feel proud and excited to see her savings grow.
Spriha set a goal to save a certain amount of money for her bicycle, and she knew that by putting a little bit aside regularly, she would reach her goal.
Key Takeaways
- Saving money is like magic, as it allows you to set money aside for future needs, wants, and goals.
- Banks and savings accounts are like magical treasure chests that keep your money safe and help it grow.
- Setting savings goals and tracking your progress can be motivating and help you achieve your dreams.
- Saving money is essential for reaching long-term goals, and it’s like planting seeds for the future.
- By saving money in a bank, you can earn interest, which helps your money grow over time.
Spriha’s savings journey had just begun, and she couldn’t wait to see her money grow in her magical treasure chest at the bank. She knew that with patience and determination, she would reach her goal of owning that shiny bicycle.
In the next chapter, Spriha will learn the art of spending money wisely, making thoughtful choices about how to use her saved money to bring joy into her life.
Exercise 5: Set and Track your Saving Goals
Now it’s your turn to start saving! Ask your parents to help you open a savings account or use a jar or a piggy bank as your savings account. Create a simple chart to track your savings over time. Decide on a goal you’d like to save for and start putting a part of your allowance or earnings into your savings account.
Step 1: Decide Your Savings Goal
- Choose a Savings Goal: Think about something you want to save money for, like a new toy, a book, or a special treat. This will be your savings goal.
- Discuss with Your Parents: Share your savings goal with your parents and ask for their input and guidance. They can help you understand the importance of setting goals.
Step 2: Create a Savings Chart
- Materials: Get a sheet of paper and a pen or pencil.
- Draw a Title: At the top of your sheet, draw a title that says, “My Savings Goal Chart.”
- Draw Columns: Create three columns on the sheet. Label them as follows: “Week,” “Amount Saved,” and “Total Saved.”
- Draw Rows: Draw several rows below the columns to make a table. You can create rows for several weeks or months, depending on how long you want to track your savings.
- Decorate: Use your creativity to decorate your chart and make it appealing.
Step 3: Track Your Progress
- Fill in Your Chart: Each week, when you receive your allowance, fill in the “Week” and “Amount Saved” columns on your chart. Write down the week number (Week 1, Week 2, etc.) and record the amount you saved that week.
- Calculate Total Saved: In the “Total Saved” column, add up the amounts saved from the previous weeks. For example, if you saved ₹100 in Week 1 and ₹200 in Week 2, your “Total Saved” for Week 2 would be ₹300 (100+200).
Step 4: Celebrate Small Milestones
- Review Your Chart: Regularly look at your savings chart to see how your savings are growing. It’s a visual representation of your progress.
- Celebrate Milestones: Each time you reach a milestone, like saving half of your goal, celebrate your progress. It’s important to stay motivated and proud of your achievements.
Step 5: Revise or Set New goals
- Update Your Goal: As you save and reach your goal, you can set a new one. Discuss with your parents what you’d like to save for next. It could be something bigger or different.
- Set a New Chart: Create a new savings chart for your new goal and continue tracking your progress.
By completing this exercise, you’ll not only set a clear savings goal but also understand the importance of planning, tracking, and celebrating your savings achievements. You’ll develop strong financial habits that will serve you well as you continue your journey toward financial literacy.